Global Financial Crisis- Causes and Impact on Indian Economy

Abstract

The term financial crisis is applied broadly to a variety of situation s in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crise were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crise include stock market c rashes and the bur ting of other financial bubble , currency crises, and sovereign defaults. The financial crisis of 2007-2009 has been called the most serious financial crisis since the Great Depress ion by leading economists, with its global effects characterized by the failure of key businesses, de lines in consumer wea lth estimated in the tri II ions of U.S. dollars, substantial financial commitments incurred by governments, and a significant decline in economic activity. Many causes have been proposed, with varying weight assigned by experts. Both market-based and regulatory so lotions have been implemented or are under consideration, while significant risks remain for the world economy. On the one hand many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihood of almost everyone in an increasingly inter-connected world. The problem could have been avoided, if ideologues supporting the current economics model s weren't so vocal, influential and inconsiderate of others' viewpoints and concerns. Keeping in view the recent problem area we choose the topic "Global Financial Crises - Cause and Impact on Indian Economy. The main objective of the study is to examine the causes of global financial crise and its impact on Indian economic activities.